Land valuation is often carried out to determine the market value of the land. As a rule, it must be carried out in the implementation of various transactions relating to this resource.
Assessment of land is divided into several types (depending on the methods of its implementation and the aim pursued). The first type of assessment is called soil appraisal and it is part of the state cadastre, the basis for the economic assessment of land in the future. The data obtained as a result of such an assessment are taken into account when determining the suitability of the soil for growing crops.
The second type of land valuation is economic valuation. Data on it underlies the normative assessment of land, analysis of land use efficiency and determination of economic suitability of agricultural land for growing crops.
And finally, the third type is a monetary valuation of a plot of land. It, in turn, can be normative and expert, which also depends on the purpose, and, of course, the procedure for its implementation. The normative assessment of land is used to determine the amount
of land tax, state duty when donating or exchanging land,
rent for the land, production losses. Also, such an assessment is used to develop indicators and mechanisms to stimulate the proper use of land.
Most valuation companies are engaged in conducting an expert monetary valuation, so it is advisable to consider this type in more detail.
Often, expert evaluation of land plots is ordered for:
-conducting a standard land sale and purchase transaction;
- transfer of the plot on bail;
-accounting;
- division of property in the event of a divorce or other litigation.
As a rule, the assessment of land includes determining the purpose of the assessment, examining the plot and determining the situation on
the land market, analyzing the package of documents from the customer, justifying the effective use of land, choosing an approach for assessing, calculating the cost of the object, finalizing the results of work (report and conclusion ) The above actions and their sequence can be changed by appraisers, if necessary. Some steps may be omitted.
If we talk about the package of documents that the customer is obliged to provide for the assessment of the site, it may differ (in many respects it depends on whether the customer is an individual or legal entity), as well as on the purpose of the object and the goals of the assessment. So, if the owner of the site is a legal entity, more documents will be required, and the evaluation process itself will take longer.
In most cases, in the list of required documents you can find the certificate of ownership, as well as a passport (required), a cadastral extract on the land plot, the charter of the legal entity, other documents on the land plot, if any, photographs of the object. As mentioned above, experts may request additional documents if necessary. It is important that all copies must be certified by a notary.